We all know that cryptocurrencies have taken over the world of financials in the past few years and have gained a lot of popularity, from casual crypto traders to large institutional investors. It was simply not possible for tax authorities like the IRS to just ignore the fact that many people are making huge profits from converting fiat assets to crypto and back, and thus, they taxed it. People residing in major countries like the USA have to pay a hefty tax for each profitable crypto transaction they make, and this can be quite costly if you managed to get in early and make a substantial profit on crypto.
But don’t worry, there are a few crypto tax free countries that can help you with this issue. These countries treat cryptocurrencies as the future of the financial world, and that is why they promote and spread awareness by keeping legalization friendlier and literally tax-free. You can check out the list below to find out which crypto tax free country would suit you best according to your preferences.
Best countries with no crypto tax
Here are the 9 best countries with no crypto tax that you can consider moving to. Take a brief look and use the information to help you make a decision.
What better choice could there be for your crypto activities, than a country in Europe with beautiful landscapes, and home to probably the greatest football player of all time? Yes, I am talking about Portugal here, and the country has always been a go-to place not only for crypto investors but traditional investors as well. This is largely because Portugal values investors, and even grants PR to those who invest a certain amount of money in the country.
If we talk specifically about crypto, Portugal has no restrictions or laws that could create trouble for you. Taxes on crypto assets are zero if you are a buy-and-hold investor, so you can buy, sell, invest, and earn all day long without worrying about giving a chunk to the government. The residents of Portugal have been tax-exempt from crypto investing since 2018. However, there is a distinction made when it comes to crypto trading; it is viewed as a profession and therefore incurs a fixed tax rate.
Singapore is one of the most beautiful and greenest countries out there that you would want to live in, or at least visit once. It is no secret that Singapore is home to millions of businesses from all over the world, and they have eased up the laws for crypto users too. In terms of crypto capital gains, you don't have to pay anything to the government, so you can keep all your profits. However, if you run a business and provide your services with the inclusion of cryptocurrencies, you will be liable to pay taxes.
Here is another European country that has made life easier for crypto holders. Note that it is ideal for those who have patience and are planning on holding their crypto for more than a year. Germany has a law where residents are exempt from capital gains taxes as long as they have held their cryptocurrencies for over a year. If it has been less than a year and you want to cash out your profits from crypto, you will, unfortunately, have to pay taxes, if the profit is greater than 600 Euros. As for businesses, they are not exempt from any tax, and they have to pay taxes as per usual.
Unlike other crypto tax free countries where they have eliminated tax only for individual crypto users, Belarus has created a tax-free crypto environment for both individuals and businesses. This is due to the law passed in 2018 where the country made crypto tax-free until 2023 in order to boost the economy through digital means. In 2023, the law will be revised, so we will see then if there are any changes.
Bitcoin is legal tender in El Salvador, meaning literally any transaction that takes place through Bitcoin is tax-free. The country also has plans to allow foreign investors with crypto portfolios to invest in the country and realize their capital gains without paying any type of tax.
Have you ever wondered why countless crypto exchanges and other businesses are headquartered or based in the Cayman Islands and other small islands? It is simply because countries or islands of this type consist of very few residents ranging from 50,000 to 100,000. This means they are exempt from different types of taxes, including cryptocurrency taxes. Even if you are running a business there, you will not have to pay tax on your capital gains or other crypto activities.
Malaysia is another beautiful country with eased-up laws for crypto holders. All types of crypto transactions, besides crypto trading, are tax-free. Capital gains on your crypto assets are tax-free, so you can enjoy all of your profits without paying any tax.
When it comes to crypto trading, it is considered revenue, and traders will have to pay tax on the profits gained from trading digital assets.
Bermuda is a small British island located in the north Atlantic ocean, which is famous for its low-tax regulations not only for cryptocurrencies but fiat currencies too. Again, crypto is exempt from tax, so users can enjoy a complete tax-free experience in the jurisdiction. This means that your capital gains, revenue, profit, withholding, and all types of other taxes will not be applied to cryptocurrencies.
Switzerland certainly has some unique laws for crypto investors and traders, which benefit individiual crypto investors the most. Qualifying individuals residing in Switzerland are exempt from crypto tax when trading, investing or realizing capital gains. However, when it comes to professional traders, miners, and businesses, they have to pay taxes as per the law and specified regulations.
If you really want to save yourself from heavy crypto taxes, there are a lot of solutions that are mentioned above and are open for exploration. Take your time, evaluate all the possibilities, and then decide which option would be the most beneficial for you as a sole individual or even a business.
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